National Lottery operator Allwyn has announced a decline in UK sales and earnings for the first quarter of 2026, despite successfully completing a significant technology upgrade, which the company considers a pivotal moment for its operations in Britain.

Based in the Czech Republic and having taken over the decade-long license from Camelot in 2024, Allwyn reported a 7% decrease in UK gross gaming revenues (GGR), dropping to euros (£814.2 million) in Q1. Underlying earnings in the UK more than halved, falling to four million euros (£3.5 million) compared to nine million euros (£7.8 million) in the same quarter last year.

Allwyn has indicated that this drop can be partly attributed to challenging comparisons with the previous year, which saw a surge in demand due to a record EuroMillions jackpot.

The company’s performance was also impacted by costs associated with updates to its online gaming platform, following the recent tech enhancements. The £450 million technology overhaul, finalized in the first quarter, included the migration of 18 million player records and more than three billion historical transactions.

Additionally, it featured updates to the lottery’s website, mobile applications, and an upgrade of technology for retail partners. This substantial investment has set the stage for the most significant changes to the draw-based Lotto game since its inception in 1994 and will enable the launch of the National Lottery’s first new draw-based game this summer: a UK-specific version of the globally recognized Powerball jackpot.

Allwyn commented, “The completion of the transformation allows for the introduction of new commercial initiatives in the United Kingdom, finalizes the transformation-related costs incurred, and marks the beginning of a recovery phase for these expenses.”